Table 2 Key parameters of the 2-sector modified DICE model.
From: An assessment of different transition pathways to a green global economy
Parameter | Description | Value |
|---|---|---|
θi | output elasticity of capital (both sectors) | 0.3 |
ηK | capital transfer cost scaling factor | 0.001 |
ηL | labor transfer cost scaling factor | 0.001 |
\({\overline{\eta }}_{K}\) | capital transfer cost exponent | 2 |
\({\overline{\eta }}_{L}\) | labor transfer cost exponent | 2 |
d | R&D share of output | 0.02 |
α0 | initial share of brown output in final consumption | 0.8 |
ϵ | elasticity of substitution between consumption goods | 0.5 |
γ0 | abatement cost coefficient | 0.1 |
\(\bar{\gamma }\) | abatement cost exponent | 2.5 |
\({\omega }_{A}^{i}\) | capital productivity scaling factor (both sectors) | 0.5/α0 |
\({\omega }_{B}^{i}\) | labor productivity scaling factor (both sectors) | 0.5/α0 |
\({\zeta }_{A}^{i}\) | capital productivity exponent (both sectors) | 0.5 |
\({\zeta }_{B}^{i}\) | labor productivity exponent (both sectors) | 0.2 |
\({\xi }_{1}^{i}\) | climate change damage cost scaling factor (both sectors) | 0.00236 |
\({\xi }_{2}^{i}\) | climate change damage cost exponent (both sectors) | 2 |
ν | learning rate exponent | 0.85 |
δ | capital depreciation rate | 0.1 |
\({\sigma }_{0}^{b}\) | initial carbon intensity of brown output | 0.340 |
gσ0 | initial growth of σ | −0.0152 |
dσ | decline rate of decarbonization | −0.001 |
